4901:1-39-08
Mercantile customer exemptions.

An application to commit a mercantile
customer program for integration filed pursuant to paragraph (G) of rule
4901:1-39-05 of the
Administrative Code, may include a request for an exemption from the cost
recovery mechanism set forth in rule
4901:1-39-07 of the
Administrative Code. To be eligible for such exemption, the mercantile customer
must consent to providing an annual report on the energy savings and electric
utility peak-demand reductions achieved in the customer's facilities in the
most recent year. The report shall include the following:

(A)
A demonstration
that energy savings and peak-demand reductions associated with the mercantile
customer's program are the result of investments that meet the total resource
cost test, or that the electric utility's avoided cost exceeds the cost to the
electric utility for the mercantile customer's program.

(B)
A statement
distinguishing programs implemented before and after January 1, 2009, or in
future reports filed for years subsequent to 2009, before and after the most
recent year.

(C)
A quantification of the energy savings or peak-demand
reductions for programs initiated prior to 2009 in the baseline period,
recognizing that programs may have diminishing effects over time as technology
evolves or equipment degrades.

(D)
A recognition
that the energy saving and demand reduction effects during the electric
utility's baseline period of any mercantile customer-sited energy efficiency or
peak-demand reduction programs that are integrated into an electric utility's
programs are excluded from the electric utility's baselines by increasing its
baseline for energy savings and baseline for peak-demand reductions by the
amount of mercantile customer energy savings and demand reductions.

(E)
A
listing and description of the customer programs implemented, including
measures taken, devices or equipment installed, processes modified, or other
actions taken to increase energy efficiency and reduce peak demand, including
specific details such as the number, type, and efficiency levels both of the
installed equipment and the old equipment that is being replaced, if
applicable.

(F)
An accounting of expenditures made by the mercantile
customer for each program and its component energy savings and electric utility
peak-demand reduction attributes.

(G)
The timeline
showing when each program went into effect, and when the energy savings and
peak-demand reductions occurred.

(H)
Any request for
an exemption may be combined with any other reasonable arrangement, approved
pursuant to Chapter 4901:1-38 of the Administrative Code, if such reasonable
arrangement contains appropriate measurements and verification of program
results.